Agrarian Economy 2020 Т. 13 № 1-2:23-28

Impact of COVID-19 on consumers’ behavior within the market of essential goods

Bochko O., Doctor of Economics, Professor
0000-0003-3422-4654
Lviv Polytechnic National University
Feier O., Ph.D., Associate Professor
0000-0001-8808-3258
Mukachevo State University
Donets D., Senior Lecturer
0000-0001-5053-026X
Lviv Polytechnic National University
https://doi.org/10.31734/agrarecon2020.01.023

ANNOTATION

The article analyzes the impact of COVID-19 on consumers’ behavior within the market of essential goods. The authors determined some changes in consumers’ behavior at the market, particularly distinguished irrational and rational consumers at the market of essential goods. It is confirmed that irrational behavior is characterized by a large volume of purchased food products in spite of high prices, which were marked at the beginning of the quarantine, and short shelf life of the majority of food products. The rise in the prices of food products was forced by the high demand, growth of production costs, rise in the dollar, and rapid fluctuation at the foreign currency market, as well as by actually closed import of many goods. The authors of the article consider that the rational behavior is determined by optimization of personal financial resources and no forecast concerning the level of income in the future and the quarantine duration. In the article, the authors supply a marketing investigation and argue a change of the volume of purchased food products in the conditions of the coronavirus disease. The work defines principal reasons of reduction and increase of the volume of food purchasing in the coronavirus conditions. The principal reason for reduction of the volume of purchased food products in the coronavirus conditions is that population gets no income not only in the future periods, but also in the established conditions. However, the main reason for the increase of the volume of purchased food products in the coronavirus conditions is that people stay at home for a longer period and need more food, as well as feel fear of the total deficit. The research defines the share of people, who get less income, more income, or the same amount of income during the quarantine. Particularly, among the respondents, 53% got less income, 44% – income stayed at the same level, and 3% – the income increased. The authors assume that among the 3%, there are respondents, who are employed in courier delivery and sale of medical supplies.

KEY WORDS

COVID-19, consumers’ behavior, demand, market, food products, pandemic

FULL TEXT

LINK

  • Baluk, N. and Basii, N. 2011. Systematization of models of consumer behavior as a means of finding areas for improvement. Scientific Bulletin of NLTU of Ukraine, 21.4, pp. 370–376.
  • Bochko, O. and Yakymyshyn, L., 2018. The impact of social networks on the buying and selling process: focus on saving time and resources. Bulletin of the National University «Lviv Polytechnic», 892, рp. 25–31.
  • Boiko, R. and Bahrii, I., 2009. Problems of consumer behavior research. Theory and practice of modern management: problems and solutions: materials of the II International scientific-practical conference, October 8-9. 2009. Ternopil: TNEU.
  • Engel, J., Blackwell, R. and Miniard, P. 2000. Consumer behavior. Sankt-Peterburg: Peter.
  • Estrada, Mario Arturo Ruiz. 2020. The Role of National Food Security in a Massive Pandemic: The Case of COVID-19. [online] Available at: https://www.researchgate.net/publication/340162579_The_Role_of_National_Food_Security_in_a_Massive_Pandemic_The_Case_of_COVID-19 [Accessed 20 May 2020].
  • Lupenko, Yu. 2020. Quarantine can lead to a lack of resources for farmers - expert. [online] Available at: https://www.ukrinform.ua/rubric-economy/2902992-karantin-moze-prizvesti-do-nestaci-resursiv-v-agrariiv-ekspert.html [Accessed 20 May 2020].
  • Navigating the impact of covid-19 on the food industry. [online] Аvailable at: https://www.sgs.com/en/news/2020/05/navigating-the-impact-of-covid-19-on-the-food-industry [Accessed 05 May 2020].
  • Ocklander, M. and Zharskaya, O. 2014. Consumer behavior. Kyiv: «Center for Educational Literature».
  • Pachkovsky, Y. and Maksymenko, A. 2014. Consumer behavior of Ukrainian households: a monograph. Lviv: Ivan Franko Lviv National University.
  • Rising food prices in supermarkets: causes, forecasts and the threat of total deficit. [online] Available at: https://zaxid.net/zrostannya_tsin_na_produkti_v_supermarketah_prichini_prognozi_ ta_zagroza_totalnogo_defitsitu_n1499990 [Accessed 20 May 2020].
  • Robert, M. 2020. Impacts of COVID-19 on the Food Industry. [online] Аvailable at: http://fapc.biz/impacts-of-covid-19-on-the-food-industry [Accessed 20 April 2020].
  • Tam, B. 2020. How COVID-19 Will Change Consumer Behavior + Purchase Patterns. [online] Аvailable at: https://www.hkstrategies.com/how-covid-19-will-change-consumer-behavior-purchase-patterns/ [Accessed 27 April 2020].
  • UPDATED Timeline: Impacts of COVID-19 on the global food industry. [online] Аvailable at: https://www.ingredientsnetwork.com/updated-timeline-impacts-of-covid19-on-the-global-news082576.html [Accessed 20 May 2020].

Article received 21.05.2020.